US Defends Tariffs as National Security Measure

The United States has clarified to the World Trade Organization (WTO) that its tariffs on steel and aluminium imports are grounded in national security concerns, not as safeguard measures. This distinction is pivotal as it counters India's recent complaint filed with the WTO.

India's Challenge and US's Response

India has requested consultations with the US under the WTO’s Agreement on Safeguards, arguing that the tariffs are essentially safeguard measures. The US, however, maintains that the tariffs were imposed under Section 232 of US trade law, which pertains to national security, thus falling under the security exception clause of the General Agreement on Tariffs and Trade (GATT) 1994.

Global Implications and Next Steps

The US tariffs, initially imposed in 2018, have faced criticism and legal challenges globally. By framing these tariffs under national security, the US aims to avoid WTO scrutiny. India's move to initiate consultations seeks greater transparency and accountability. If unresolved, India may request a dispute settlement panel at the WTO.